You need to develop a transformation story that creates lasting connection to the change you want to see. These are extraordinary times, and inevitably they have required some companies to lean into these challenges by slashing costs, reducing headcount and halting investments to conserve cash. We strive to provide individuals with disabilities equal access to our website. Article Maximizing the “value” in value networks and value-based payment. Unleash their potential. For Arnoldi, that meant communicating to her team what was going to be different. In this edition, Article In this article, we offer a closer look at how E&C companies can realize benefits like these. Organizational transformations are hard work, and according to the latest McKinsey Global Survey on the topic, 1 companies are no more successful at overhauling their performance and organizational health than they were ten years ago. A McKinsey Live event on ‘The secrets of transformation success’. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. SUBJECT * MESSAGE * Security validation * McKinsey & Company is committed to protecting your information in accordance with its privacy policy. “I don’t think any leader has all the answers, but it is our responsibility if we’re going to embark on a transformation to have some guideposts for what the vision looks like, and to grow that vision over time,” she says. Learn more about cookies, Opens in new July 16, 2019. Insights on how organizations can respond, and what happens next. A quick, out-of-the-gate approach not only allows a company to notch early wins—more efficient use of working capital and faster ways of unlocking employee ideas, for instance—but it enables an organization to have the stamina to take on the tougher aspects of true transformation. You can also see the first installment from the multimedia series, “How six companies are using technology and data to transform themselves.”. Data reinforced her belief. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. 2 A particular blind spot seems to be the failure to involve frontline employees and their managers in the effort. Welcome to the McKinsey Podcast, a business and management podcast featuring conversations with leading experts. We bring to bear our firm’s industry and functional expertise, combined with specialists and practitioners with deep transformation experience. “If we didn’t make the big changes we needed to at the beginning, I don’t know that we’d be in the good position we are today,” Oliver says. There’s no denying that the fashion industry has been a major contributor to climate change and biodiversity loss—which... ’Tis the season for year-end lists. Trending topics. “It’s almost a sense of ‘the bridge is burning and there’s no going back,’” says Melissa Arnoldi, Vrio CEO. Linkedin. “We looked at the business over a three-year period and saw that we needed to transform our business,” she says. Please email us at: George Oliver, chairman and CEO, Johnson Controls. Article The … up to serve consumers, despite the heightened uncertainty of COVID-19. Facebook. Featured Insights. This sense of urgency is one of the key elements that allowed Vrio, AT&T's Latin America digital entertainment services business unit, to gain market share and diversify its services over the past two years. our use of cookies, and collaboration with select social media and trusted analytics partners “Those companies will never look back.”. Research by the McKinsey Global Institute indicates that digital transformation can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent. Our flagship business publication has been defining and informing the senior-management agenda since 1964. hereLearn more about cookies, Opens in new Business leaders pride themselves on their ability to pivot and course-correct in times of crisis and economic turmoil. “The companies that are doing transformation right have an all-in mentality from the start,” Robinson says. Please use UP and DOWN arrow keys to review autocomplete results. The series features... Watch our collection of videos featuring perspectives from CEOs, leading industry experts, and authors. Karel Bosse ABN AMRO’s program director of IT transformation. Most transformations fail. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe, Don't miss this roundup of our newest and most distinctive insights, Select topics and stay current with our latest insights. Accelerate. McKinsey Offers 10 New Insights on Digital Transformation. People create and sustain change. We use cookies essential for this site to function well. After years of McKinsey research on organizational transformations, 1 the results from our latest McKinsey Global Survey on the topic confirm a long-standing trend: few executives say their companies’ transformations succeed. This collection is the second of five edited volumes to accompany our multimedia series, airing on CNBC, focusing on the forces shaping the next normal. Our latest thinking on the issues that matter most in business and management. That meant bringing problems forward, speaking the truth, showing respect and collaborating on solutions. “The companies that are doing transformation right have an all-in mentality from the start,” Robinson says. A recent piece by McKinsey Global Institute (MGI) takes a look back at how life has changed since the “commercial internet” emerged. And because Johnson Controls stretched and made those investments early on, it’s been able to respond to the Covid-19 crisis in a more robust way. McKinsey senior partner Harry Robinson joins CEOs to discuss what it takes to truly transform an organization. - McKinsey Global Institute, Interview Please fill out the form below to inquire about our work in Transformation. Never miss an insight. 4 One of the two main reasons, chosen by 61 percent, is that staff gained new skills through the transformation. Flip the odds. tab. Please click "Accept" to help us improve its usefulness with additional cookies. Article How to become ‘tech forward’: A technology-transformation approach that works. We use cookies essential for this site to function well. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. Thanks to this modular approach, our tech-enabled transformations integrate … Learn more about cookies, Opens in new Transformation is one of the most overused terms in business. Most transformations fail. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Digital. Setting an aspirational tone at the top, Robinson says, allows a CEO to inspire people to go beyond what they thought possible. Only 30% of organizations are successful in their transformation processes. Transformation Insights. Press enter to select and open the results on a new page. The Truth About Transformation | McKinsey & Company The truth about transformation Most organization-wide transformations fail. Ulrich Weihe Senior Partner, Frankfurt Unterstützt weltweit Firmen der Chemie-, Biotech- und Prozessindustrien zu den Themen Strategie, M&A, Restrukturierung und Transformation, R&D und Merger Management. Reinvent your business. McKinsey’s broad suite of transformation offerings helps clients flip the odds to achieve extraordinary results for their organizations. Read our latest research, articles, and reports on Transformation. Flip the odds. Enabling your people to accelerate and sustain the change. McKinsey’s research on more than 80 large-scale transformations shows that companies that conduct a comprehensive “full potential” analysis and set transformation targets that nearly doubled trailing earnings were more likely to realize outsized total return to shareholders gains. Envolva todos na transformação, não apenas os líderes seniores. It started with making sure the company had the right leadership in every line of business, but Oliver says it was more expansive than that. Report The work paid off. “We told them we were going to launch additional products and move into new verticals,” she says. topics ranging from leadership and change management to digital, analytics and deep-dives into specific regions and industries. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. It also meant engaging employees at every level of the organization. “There needs to be one vision and a clarity of fundamentals or it’s going to be a mess.”. Évident pour certains. Please try again later. Featured Insights. Oliver says transparency and open, honest communication—even the tough and not-so-pleasant news—was part of his vision for Johnson Controls from the moment he took over. But there isn’t a CEO or management team on earth that’s experienced the health, financial and operational headwinds that have resulted from the coronavirus pandemic. “Bold performance aspirations often lead to greater outcomes,” he says. Please click "Accept" to help us improve its usefulness with additional cookies. “You have to paint a picture of where the business needs to head and why.”, Arnoldi says a flurry of macroeconomic forces, including foreign exchange fluctuations, government regulations and mounting competition from new and nimble streaming platforms in Vrio’s 10 markets, made it easier for her to make the case that quick and decisive action was necessary. You can’t pull off an effective transformation if people have hidden agendas and go off and do their own thing. McKinsey Global Institute. That’s because if business models and mindsets don’t shift, those costs will just creep back. Please try again later. It all started with the release of the industry’s first Web browser more than 25 years ago. Arnoldi concurs. Arnoldi made sure she shared at every turn her vision of the company as the leading pay TV provider in South America with employees, customers and investors. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. cookies, McKinsey_Website_Accessibility@mckinsey.com, Harry Robinson: How companies must transform for success in The Next Normal, How six companies are using technology and data to transform themselves. We use cookies essential for this site to function well. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Contact us to inquire about our work in transformation. Transformational change is still hard, according to a new survey. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. Further, 69 percent of respondents who have an opinion say their companies’ transformations led to a greater capacity for continuous improvement. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. For instance, part of the OpenBlue platform uses cameras that can scan multiple people as they enter a building to detect if any of them have an elevated temperature, one of the biggest indicators of infection. trend of institutional pullback in the social contract. McKinsey research shows that more than 40 percent of a successful transformation’s value comes from growth initiatives—not cost cutting, layoffs or other slash-and-burn strategies. Research shows that 70 percent of transformations fail, but by starting boldly, acting fast, sharing a vision and stretching aspirations, business leaders can flip that script. One of the most important indicators of the colossally successful transformations is the scale of the undertaking itself. “Incremental change is not their story.”. tab. Interview - McKinsey Quarterly Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon December 2, 2020 – Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw. “That means we’re making investments in our people and we’re rewarding transparency, smart risk taking, resilience and collaboration,” she adds. Use minimal essential Our flagship business publication has been defining and informing the senior-management agenda since 1964. “You have to be able to back up your vision with data to get people to understand why you’re doing something.”, Any truly successful transformation has to begin with the CEO creating conviction in employees to drive the change being sought. There needs to be one vision and a clarity of fundamentals or it’s going to be a mess. True transformation—the kind that alters the way a business operates on a cellular level—is what’s needed in today’s uncertain climate. Please use UP and DOWN arrow keys to review autocomplete results. If you would like information about this content we will be happy to work with you. McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. How to Beat the Transformation Odds, McKinsey Quarterly, abril 2015, com base em entrevistas com cerca de 2.000 executivos globais. cookies. Taking a more holistic and expansive approach to transformation increases the chances that an organization will, in fact, see significant and sustainable improvement in the years ahead. Something went wrong. Doing so is made easier when there’s a growth mindset, she adds. Keeping hundreds or thousands of initiatives on track is a monumental task, one that too few organizations around the world do well. We use cookies essential for this site to function well. Go behind the scenes and get more insights with “Harry Robinson: How companies must transform for success in The Next Normal” from our New at McKinsey blog. Use minimal essential Learn about We use cookies essential for this site to function well. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Encore à prouver pour d’autres. Twitter. “But it’s here now, and the organizations going all-in on transformation can change the odds in their favor and will accelerate out of this crisis,” he adds. Required fields are marked with an asterisk (*). Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Article Reducing lapses in healthcare coverage in the Individual and Medicaid markets. Interactive - McKinsey … But to thrive in the Next Normal, companies need to make more fundamental changes. Unleash their potential. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Insights from the McKinsey 2019 Consumer Social Determinants of Health Survey. “And we were specific, saying that we’re going to transform our business to be over 60 percent digital by the end of 2020 and over 80 percent digital by the end of 2023.”. Die Schaffung einer Performance-Infrastruktur kann dazu beitragen, ein Scheitern zu verhindern. Please click "Accept" to help us improve its usefulness with additional cookies. Restrukturierung & Transformation McKinsey's Transformation practice verhilft Klienten zu einer schnellen, deutlichen Leistungssteigerung und bietet zudem das gesamte Servicespektrum für Unternehmen mit Liquiditätsengpässen oder drohender Insolvenz Please click "Accept" to help us improve its usefulness with additional cookies. For Johnson Controls, Oliver says transformation and growth was only possible when there was alignment on the fundamentals. RTS is a unit of McKinsey focused on corporate turnarounds and transformations. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Subscribed to {PRACTICE_NAME} email alerts. The good news is that there are companies doing this kind of transformation successfully, and business leaders can learn from their wins. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. In fact, Robinson says, it is one of the most defining characteristics of a successful transformation. “People had been doing their jobs for years, but no one had been asking them what their ideas were or how things could be better,” Oliver adds. Não apenas os líderes seniores a clarity of fundamentals or it ’ s.... Hundreds or thousands of initiatives on track is a unit of McKinsey focused on corporate turnarounds transformations! Tools, checklists, interviews and more main reasons, chosen by 61 percent is. Stay current with our latest thinking on the fundamentals led to a greater capacity for continuous improvement Accept '' help! Chosen by 61 percent, is provided in our cookie policy to all inquiries 4 one of the economy. 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Watch our collection of videos featuring perspectives from CEOs, leading by example, engaging employees, and improving.